DCIT,CPC, BENGALURU V. VAIYAPURI VENKATASUBRAMANIAN, THIRUPPUR

MA 200/CHNY/2022

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The Income Tax Appellate Tribunal in Chennai addressed multiple Miscellaneous Applications (M.A.) filed by the Revenue seeking rectification of earlier orders concerning the late payment of Employees' Contributions to PF/ESI by various assessees. The Tribunal consolidated these applications with a lead order (MA Nos. 97/Chny/2022 & 11/Chny/2023) which had already set a precedent. The Tribunal found that there was a mistake apparent from the record in the earlier orders and thus allowed the Revenue's applications, directing the re-computation of income for the assessees by disallowing the late payments. This decision aligns with the Supreme Court's ruling in Checkmate Services P. Ltd. Vs CIT, which was cited as a key precedent.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134106 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-07-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 30-10-2022
• Other Referred Cases: Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022), Electrical India (ITA No. 789/Chny/2022)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(1); 254(2)

Judgement Text

आयकर अपीलीय अिधकरण “ए” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM S. No M.A No. Asstt Year Applicant Respondent Applicant by Respondent by 1-2 M.A.Nos.171 & 172 /Chny/2022 (In ITA Nos.147 & 146 /Chny/2022) 2 0 1 9 - 2 0 & 2 0 1 8 - 1 9 DCIT Non- Corporate Circle-4 Coimbatore M/s. Venus Rubbers 333,Kalappanaickenpala yam, Kanuvai Coimbatore-641 108. PAN:AABFV-0275-F Shri AR.V.Sreenivasan Addl.CIT Shri Tarun, Advocate for Mr.S.Sridhar, Advocate 3 M.A.No. 131/Chny/2022 (In ITA No.145/Chny/2022) 2017-18 DCIT, Corporate Circle-1(1), Chennai. M/s. Avon Global Solutions Pvt.Ltd 42,Jaleel Towers, K B Dasan Road, Teynampet, Chennai-600 018. PAN:AAGCA-4175-M Shri AR.V.Sreenivasan Addl.CIT Shri N.V.Balaji Advocate 4-5 M.A.No.145 & 146 /Chny/2022 (In ITA No.40& 39/Chny/2022) 2019-20 & 2017-18 ACIT Corporate Circle, Madurai. M/s.Sun Tamilnadu Security Management Services P.Ltd D.No.2, Plot No.3, SBI Officers 2 nd Colony Ram Nagar, Bye-Pass Road, Madurai-625 010. PAN: AAPCS-9060-C Shri AR.V.Sreenivasan Addl.CIT Shri Tarun, Advocate for Mr.S.Sridhar, Advocate 6 M.A.No. 133/Chny/2022 (In ITA No.104/Chny/2021) 2017-18 DCIT Corporate Circle-1(1), Chennai. M/s.Imperial Granites Pvt.Ltd. 76, Cathedral Road, Gopalapuram, Chennai-600 086. PAN:AAACI-2721-B Shri AR.V.Sreenivasan Addl.CIT Shri D.Palanivel, Advocate 7 M.A.No.200/Chny/2022 (In ITA No.121 /Chny /2022) 2 0 1 8 - 1 9 DCIT Circle-1, Tirupur. Shri Vaiyapuri Venkatasubramanian, 34-C, M.V.Compound, Brideway Colony, Thiruppur-641 607. PAN: ABWPV-1521-G Shri AR.V.Sreenivasan Addl.CIT None 8 M.A.No.194/Chny/2022 (In ITA No.55/Chny/2022) 2 0 1 7 - 1 8 DCIT Circle-1, Tirupur. M/s.Warsaw International 33-B, Vaikkal Thottam Sheriff Colony, Tirupur-641 604. PAN: AAAFW-2693-R Shri AR.V.Sreenivasan Addl.CIT Shri Suraj Nahar, C.A सुनवाईकीतारीख/Date of Hearing : 19-05-2023 घोषणाकीतारीख/Date of Pronouncement : 01-08-2023 2 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of captioned Miscellaneous Applications, the Revenue seeks our indulgence in Tribunal order passed in captioned appeals on 11.04.2022. The revenue has filed similar applications in bunch of appeals seeking restoration / rectification of order on identical grounds. All these applications were heard together and opportunity was given to learned authorized representatives of all the assessees to meet out the applications filed by the revenue. The captioned applications were also heard along with that bunch. It was admitted position that the adjudication in lead applications would apply to all the other similar applications filed by the revenue. The lead order has now been passed by the bench in MA Nos. 97/Chny/2022 & 11/Chny/2023 on 31.07.2023 wherein the applications of revenue has been allowed and the issue, on merits, has been decided against the assessee considering the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022). After considering the rival submissions, the Bench held that there was mistake apparent from record in terms of section 254(2) and therefore, the Revenue’s applications were to be allowed. The issue, on merits was decided against the assessee. It was also held that such an adjustment could very well be made while processing return of income u/s 143(1) as per decision in Electrical India (ITA No. 789/Chny/2022). 2. Accordingly, accepting the present applications of the revenue, the captioned order stand modified and the impugned issue is decided 3 against the assessee. The Ld. AO is directed to re-compute the income of captioned assessees by disallowing late payment of Employees’ Contribution to PF / ESI which have been deposited beyond due date as specified in respective welfare ESI / PF acts. The order of Tribunal stand modified accordingly. A copy of this common order may be placed in respective files. 3. All the applications stands allowed. Order pronounced on 01 st August, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा / VICE PRESIDENT लेखा सद" / ACCOUNTANT MEMBER चे$ई Chennai; िदनांक Dated : 01-08-2023 DS आदेश की Kितिलिप अ %ेिषत / Copy of the Order forwarded to : 1. अपीलाथ/ / Appellant 2. 01थ/ / Respondent 3. आयकर आयु4/CIT 4. िवभागीय 0ितिनिध/DR 5. गाड9 फाईल/GF